CTFX Review – Identify the Warning Signs

CTFX Review

If you are looking for a way to make some quick money, dipping your toes in one of the financial markets is one of the best options for you to explore. You will need the services of a brokerage firm to get started and one search will show you that there are thousands of options for you to check out. Trading in the financial markets has become very simple and convenient because of these online brokers that open the doors for you and provide you with everything you need for this purpose. But, this CTFX review shows that not all online brokers have the right intentions.

Indeed, it will not take you long to discover that there are bogus companies that exist over the internet and their primary aim is to steal money from people. Signing up with a broker means you have to put your money and your sensitive and confidential data in the hands of someone else and you cannot do this with a company you cannot trust. Therefore, you need to ensure that they do not have any signs that indicate they are not legitimate and trustworthy. Yes, it is understood that there will not be a flashing sign telling you that you are dealing with an impostor.

But, this does not mean that there are no warning signs that can help you. After all, no matter how hard a scam broker may try, it cannot be the same as a legitimate and genuine platform. There will always be flaws that reveal who they really are and it is you who needs to be diligent to identify them. As long as you are willing to do that, you can minimize the chances of becoming a scam victim and improve your chances of finding the best brokerage for your needs.

These signs can also be found when you check out CTFX closely. Want to know what they are? Some of the major ones are highlighted below:

No licensing and regulation

If there had to be just one sign that you are dealing with a legitimate and professional broker, it would be their licensing and regulatory status. This is because brokers that have a license and are regulated maintain high standards of service and comply with rules and laws. If not, there can be accountability and this offer safety to traders. A broker that lacks in this area automatically becomes shady because it will not be able to offer the same reassurances to its clients. This is exactly what happens in the case of CTFX.

According to the CTFX website, the online broker is operated by a company named Ebullience Group LLC, which is a company based in Saint Vincent and the Grenadines. The primary problem is that companies set up in this region are not licensed in any way. The Financial Supervisory Authority (FSA) of SVG does not monitor or regulate the forex industry, so they are not being supervised at all.

Therefore, it is not surprising that these offshore zones have become a hotspot for scam platforms and this seems to be the case with CTFX as well because they can operate from there without any accountability at all.

Malicious bonus policy

One of the most prominent warning signs that you will come across on the website of CTFX is the fact that they are offering trading bonuses to their clients. Why is this a problem? This is due to the fact that these bonuses are not what they appear to be. They always have some strings attached and these are never in the interest of the traders. They are not fair at all and are specifically designed to exploit the traders. It is because of this nature that regulatory authorities around the world decided to impose a ban on trading bonuses altogether.

In the case of CTFX, it is operating from an offshore jurisdiction, so they are offering trading bonuses to their clients and as expected, they come with strings attached. First off, you will find that they have a minimum trading volume requirement that traders are expected to achieve before they are allowed to withdraw the profits they generate from their bonus. The problem is that there is no way for you to physically separate your own funds and the bonus and the profits made from each.

Essentially, this means that CTFX will not allow you to make a withdrawal at all and this is exactly the reason for introducing the bonus. Since the trading volume requirement is impossible to achieve, you will not be able to get the money you have already deposited.

No professional trading platform

Things continue to get worse as you keep on digging into the story of CTFX. A look at the trading platform that the broker offers is yet another indication that you are dealing with a shady platform. They are offering an oversimplified web trading platform that cannot hold a candle to some of the top platforms that exist in the market, such as the MT4 and the MT5. These are well-known platforms that are equipped with proper tools and features that can be incredibly useful during the trading process. Unfortunately, you will not find these available at CTFX and all you will have is a web trading platform, which is quite common in scam brokers.

High spreads and leverage

Checking the trading conditions of a broker is also a must and the ones you find at CTFX should also be considered a warning sign because they are aimed at exploiting people. How? First off, if you check out the spreads that the broker is offering, you will find that they are 3 pips for the EUR/USD pair, which is excessive. Most brokers don’t go beyond 1 or 1.5 pips and this is twice more. Secondly, the leverage ratios are as high as 1:500, which are extremely risky and such ratios are banned in most jurisdictions.

Bottom Line

These warning signs make it evident that CTFX is not a good and trustworthy broker from any aspect and you need to drop it immediately.